What Factors Affect Your Life Insurance Rate?
Whether you are 25 or 55, a life insurance policy gives you the peace of mind that should the worst happen, you and your loved ones will be taken care of.
Life Insurance premiums are calculated after looking at an individual’s health risk factors, such as tobacco use, cholesterol level, obesity, diabetes and family history. Modifying controllable health and lifestyle factors will reduce your life insurance premium, in addition to making you healthier!
Calculating Life Insurance Premiums
When applying for life insurance, you will be asked to provide information about your medical history and take a physical examination. If you are not completely truthful about your medical history, you may lose your policy or, when you die, your dependents may be denied death benefits. Therefore, it is imperative that you tell the truth throughout this process.
A medical practitioner hired by the insurance company will typically come to your home to administer an exam. This person will check your weight, blood pressure and other vital signs. Blood tests are used to detect the presence of antibodies or antigens to various viruses and diseases. Urine tests are used to detect the presence of medications and illegal drugs.
Some things to consider before having a life insurance medical exam:
- Get a good night’s sleep the night before.
- Do not drink alcohol for at least eight hours prior to the exam.
- Limit your intake of salt and high cholesterol foods for at least 24 hours prior to the exam.
- Do not engage in strenuous exercise for 24 hours prior to the exam.
After this process, the insurance company will determine your premium. There are health factors that you can change to lower your premium. For instance, you could:
- Stop smoking
- Lose weight
- Improve your cholesterol levels
- Take medications regularly
Do you have family members who nag you about exercising more, eating healthier, quitting smoking or lowering your blood pressure? Well… it may be time to start listening to them. Your lifestyle, engaging in dangerous activities and having modifiable health issues (example: smoking-related asthma) will increase your premium.
If you have taken the steps to improve controllable health factors, such as quitting smoking, you may contact your insurance company and ask about lowering your premium.
Even if you already have life insurance through your employer, you may be underinsured. Call a local Marshall & Sterling Insurance Representative today—we can work with you to ensure that there aren’t any gaps in your current coverage. We can help you to find affordable life insurance coverage that suits your unique needs and provides for your loved ones when they need it the most. We can help you figure out how much your family will need to replace lost income should something happen to you. Click here to learn more.